Distinguished Guests,

Ladies and Gentlemen,

It is my honor to attend your conference. First of all, let me express my gratitude to all the sponsors of the conference for giving me such a good opportunity to meet so many distinguished scholars, guests and friends present here. Among them is Professor Rao Geping, who was my schoolmate in 1970s and is currently my son's teacher in Peking University Law School. Welcome to Canada, Professor Rao and other leading experts from Beijing, Hong Kong and Macao.

This conference is an important academic undertaking focused on the issues related to the concept and practice of "one county, two systems". I am sure that your thoughts, comments and perspectives as well as the exchange of views will certainly contribute to a better understanding of China in general, and Hong Kong and Macao in particular. It is also conducive to the further development of Sino-Canada relations.

As you know that the concept of "one country, and two systems" is one of the greatest initiatives advanced by Mr. Deng Xiaoping in light of the China's realities. It both upholds China's state sovereignty and takes into full account the history and specific conditions of Taiwan, Hong Kong and Macao. According to the concept of "one country, two systems", different political and legal systems will be practiced within the sovereign state of China. The main body of the country will continue to practice the socialist system, while the existing capitalist system and way of life in Taiwan, Hong Kong and Macao will remain unchanged for a long period of time. The concept has been successfully implemented in Hong Kong and Macao since 1997 and 1999 respectively, and will continue to be the foundation stone for the Chinese government's policy of peaceful reunification on Taiwan. Within the framework of "one country, two systems", the Hong Kong and Macao special administrative regions have enjoyed a high degree of autonomy since their establishment. The Chinese government has abided strictly by the Basic Laws of HKSAR and MSAR, firmly supporting the chief executives and the governments of HKSAR and MSAR to administer Hong Kong and Macao, without any interference in their internal affairs. Hong Kong and Macao have overcome setbacks such as the Asian financial crisis, an ominous turn of events in the global economy and SARS epidemic, and have made great progresses in promoting a long-term economic growth and sustainable development. Facts prove that the principle of "one country, two systems" is entirely correct and has already shown itself to be, and will continue to remain, viable.

Today, as instructed by the organizer of the conference, I would like to briefly share some information with you on the relationship between China and Canada.

Ladies and Gentlemen, since the establishment of diplomatic ties between China and Canada in 1970, our bilateral relations have developed smoothly, featured by frequent exchange of visits at different levels and various circles, fast growing trade, flourishing cultural events and close cooperation on the international affairs.

In fact, the Chinese and Canadians began their exchanges long time ago. Hundreds and thousands of Chinese emigrants came to Canada building the pacific railroad about 100 years ago. During World War II, the Chinese and Canadians fought shoulder to shoulder, over 500 Canadian soldiers laid down their precious lives defending Hong Kong. Dr. Norman Bethune, who went to China to join the Chinese fighting against Japanese aggression and worked very hard to save the dying and heal the wounded, has been one of the most popular names in China for many decades.

In later 1950s and early 1960s, the Conservative Government of Canada, upon the recommendation of the then Minister of Agriculture, Mr. Francis Alvin George Hamilton, decided to sell Canadian's surplus grain to China despite the stronger pressure from its western ally in the context of the cold war. Over $422 million worth of wheat and barley was sold to China in two and a half years. These sales not only provided China with grains, but also stimulated and restored the agricultural prosperity of Canada--the average farm income tripled--and created a lasting legacy for the Conservative government.

In 1970, Canada was among the first western nations to establish diplomatic ties with the People's Republic of China.

Ladies and Gentlemen,

While entering the 36th year of our diplomatic relationships, it is fair to say that China-Canada relations are moving ahead steadily, harvesting the fruit of more than 3 decades of development.

In the political field, one of the most significant characteristics is that the two countries have forged a close relationship. In 1997, the partnership of comprehensive cooperation was formally established. When Premier Wen Jiabao visited Canada in December 2003, the idea of setting up a Strategic Working Group (SWG) was initiated. In January 2005, the SWG was officially launched and later in August its first session was successfully held. Soon in September, during President Hu Jintao's visit to Canada, the leaders of China and Canada agreed to upgrade the bilateral relationship to the strategic partnership. This move meets the needs of our times and the wishes of our two peoples, and it completely serves the common interests of the two countries.

It seems to me that the Sino-Canada strategic partnership is a new type of state-to-state relationship, which is not a political or military alliance in its old fashion, is not aimed at any third party, nor does it take after any country blocks of the Cold War. This partnership is based upon the principle of independency, equality and mutual benefit. The two sides will put in place a long-term and stable cooperation framework, and work together closely to push for all-dimensional cooperation to cover more extensively the political, economic, trade, science and technology, culture, education, health, environment and other fields. China and Canada also agreed to step up consultation and coordination on major international and regional issues and work together to make still greater contribution to world peace and common development.

In the aspect of trade and economic cooperation, the deepening economic partnership serves as a key component of and important driving force for the bilateral relations. Thanks to our joint efforts, China-Canada economic ties have evolved from small, simple-item commodity trade into all-dimensional cooperation covering trade in commodity and services, capital flows and personnel exchanges. According to Chinese statistics, two-way trade increased over 100 times from US$150 million in 1970 to US$10 billion in 2003, to US$15.5 billion in 2004, and to US$19.17 billion in 2005. Consumer goods and household electrical appliances made in China, good in quality and affordable in prices, meet the needs of Canadian consumers. Canada's capital, technologies and managerial expertise have added fresh vitality to China's growing economy. Canada-made high-speed locomotives and buses equipped with gas-powered Canadian engines are running all over China. China has risen to the 2nd largest trading partner of Canada, only after the U.S., and Canada China's 10th largest trading partner. Canada began its direct investment in China in 1980. Since then, the total number of projects directly invested by Canada in China has amounted to over 8900, with contracted investment around US $17 billion. Meanwhile, additional 21 Chinese enterprises were established in Canada for the past year alone. All in all, the rapid development of China-Canada economic partnership has delivered enormous tangible benefits to the two peoples.

However, given the size of the two economies and our respective foreign trade volume, there is still a great potential for bilateral trade and economic cooperation. At present, China-Canada trade accounts for only 1.3% and 2.6% of their respective foreign trade volumes. Canadian investment in China makes up less than 1% of China's FDI, while Chinese investment in Canada is barely starting. Canada, with its highly developed economy, complete industrial sectors and rich natural resources, and China, with its rapid economic growth and huge market, are highly complementary. It is therefore a common task before the governments and business communities of China and Canada to seize the historic opportunities, expand the areas of cooperation and move our trade and economic cooperation to a new high.

The active bilateral exchange has also yielded fruitful results in many other areas. The flourishing cultural exchange brought to Canada large-scaled Chinese cultural programs, such as the Beijing Culture Week, Xi'an Culture Season and China Tibetan Culture Week. Many Canadians enjoy this unique cultural experience.

The two sides have signed more than 20 agreements and MOUs, spanning extensive scientific areas ranging from energy, environment, metrology, geology, to mining and agriculture.

Education has turned out to be a new growth point in our relations. In the past few years, we have signed 6 cooperative agreements and MOUs, and numerous partnerships have been fostered between the higher education institutions of the two countries. Now there are more than 55, 000 Chinese students studying in Canada, and around 1200 Canadian students studying in China.

At the international arena, our cooperation has been equally productive. Canada supported Shanghai in its bid for 2010 World Expo, while China supported Whistler in its bid for 2010 Winter Olympics. Canada rooted up for China's entry into the International Thermal nuclear Experimental Reactor (ITER) project, while China lent its support to Canada's candidature for the non-permanent membership of the UN Security Council. And the two countries have worked together in the important sector of the UN reform.

Today, as we review our relationship, there is no reason that we should not feel proud of what we have achieved so far. This dynamic and multi-faceted relationship is a tribute to the tireless efforts of both the governments and peoples of our two countries.

Ladies and Gentlemen,

Over these 36 years, the world has undergone profound changes. Mankind has moved out of the dark shadow cast by the Cold War standoff, with peace, development and cooperation emerging as the irresistible trend of history. With their interests intertwining, countries have become increasingly interdependent. In the meantime, many factors of instability and insecurity remain, such as terrorism, proliferation of weapons of mass destruction, drug trafficking, spread of deadly diseases and other outstanding global problems.

Against such a backdrop, China-Canada common interest has increased; the foundation of their cooperation further solidified. A key reason behind the sound growth of our relations is that China and Canada, as two great countries along the Pacific Rim, share common interests in maintaining peace and stability of the Asia-Pacific region and the world at large. Economically, our two economies are complimentary to each other. China is the world's biggest developing country with a huge potential market. While Canada, one of the leading industrialized economies in the world is known for rich natural resources, strong financial strength and cutting-edge technologies. With respective advantages, the two economies make an ideal pair of partners for mutually beneficial cooperation. We have no fundamental conflict of interests but much common ground instead. And we know that to develop a mutually beneficial relationship is in the interest of our two countries and peoples.

Ladies and Gentlemen, the ancient Chinese philosopher Confucius said, "When you reach the age of 30, you reach maturity". I think this remark aptly describes the evolution of China-Canada relations that have entered its 36th year. It is a time to assess past progress and look ahead for future achievement. China is ready to work with the Canadian Government to chart new territory -- new areas of cooperation and mutual benefit; new areas of sharing and exchange; new areas of growth and development and build stronger and more dynamic relations in the years to come. Let us witness a bright future of the bilateral relations between China and Canada.

Thank you for your kind attention.